More than 175,000 businesses signed up to the National Employment Savings Trust (Nest) in 2016, the government-backed auto-enrolment provider has revealed.
Of those, 95 per cent were small or micro-businesses.
Paul Budgen, Nest’s director of business development, said this proved small employers could “do auto enrolment, and do it well”, adding many had “a far simpler set-up than their larger peers”.
“The fact that 41 per cent of micro employers didn’t need to call us at all when establishing their accounts demonstrates this,” he said.
Reflecting on 2016, Mr Budgen said, from a pension perspective, it would be remembered as the year auto-enrolment “stepped up a gear”.
“It’s fair to say that many people will remember 2016 as a year of unexpected change with a Trump presidency and a vote for Brexit both confounding the pollsters," he said.
“Among the surprises and jolts the year brought, the steady and effective process of rolling out auto-enrolment perhaps felt like a reliably well-oiled machine by comparison.”
Another key development for Nest was the publication of its responsible investment report, laying out its approach to environmental, social and governance factors.
“Responsible investment was a theme that came up repeatedly through the year,” he said.
“The sector focused on its importance within a long-term investment strategy and how it can be a sign of a high quality investment approach.”
He added that industry co-operation on the pensions dashboard was another highlight of 2016.
“No matter what unexpected changes 2017 brings to our journey, I think this spirit of cooperation will remain tremendously important for the delivery of auto enrolment,” he said.
james.fernyhough@ft.com
